Nintendos handheld strategy

Since people realized that 3D was just a short trend and the average consumer doesn’t want to watch movies in 3D at home with this stupid glasses, also Nintendo took a step back and recently published details about a new device without 3D functionality called the Nintendo 2DS.

Nintendo once was a kind of monopolist concerning mobile gaming devices. With the expansion of smartphones Nintendo now faces a much more challenging market than 10 years ago. The smartphone will lead to a decline of the market for mobile games in the same way the smartphone replaced small digicams. Nintendos only chance to conduct this business is providing cheap devices and getting as much players to the Nintendo-World as possible. Then, Nintendo can make the big money by selling expensive (and exclusive) games. They are well established in the market for young customers and they are also the number one brand for family consoles.

It’s the same principle, Nespresso follows: You get the coffee machine for peanuts, but you have to pay more for the coffee-capsules. Most customers feel good because they bought a very cheap coffee machine without realizing that they will pay more in total extrapolated to the future because the capsules are more expensive than buying simple coffee in the bag.

So in fact, the Nintendo 2DS is actually not a step back but a step forward for new customers. And I’m pretty sure, the next device will not be a Nintendo 1DS…


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